HR for small businesses

It is important if you employ staff that you have an understanding of what HR Compliance is required.  

 

There are some key legal HR requirements that every small business should know, even if you outsource your HR. Navigating the world of HR compliance can be challenging, especially for small businesses with limited resources. 

 

However, understanding and adhering to legal requirements is crucial to avoid costly penalties and foster a fair, safe, and productive work environment. 

 

 

 

Under UK law, employers must provide employees with a written statement of employment particulars within two months of starting work. This includes key details such as job title, salary, working hours, and notice periods. Ensuring clear, written contracts helps prevent misunderstandings and legal disputes. 

 

On the Government website you can find details on contracts of employment and working hours. This information includes Includes types of worker, employee rights, overtime and changes to contracts. You can find the details here 

You must also be aware of Statutory sick pay, materntiy and paternity laws and redundancy laws and having a staff handbook is vital to outline this and your company policies.  

 

Employees are entitled to Statutory Sick Pay (SSP) if they are off work due to illness. Ensure your policies comply with SSP requirements. Similarly, employees are entitled to statutory maternity, paternity, adoption, and shared parental leave and pay. Familiarise yourself with these entitlements to support your employees appropriately. 

 

 

 

The Health and Safety at Work Act 1974 requires employers to ensure, as far as reasonably practicable, the health, safety, and welfare of employees. Conduct regular risk assessments, provide necessary training, and maintain a safe working environment. 

Details on the Government website - details here . 

We would advise working with a health and safety company to assess your needs and ensure you are fully compliant. There is also information on the HSE website here.  

 

 

You must ensure you implement clear disciplinary and grievance procedures in line with the ACAS Code of Practice. This ensures fair treatment and helps resolve workplace issues effectively. Documenting these procedures in an employee handbook provides clarity and consistency. 

 

 

You must stay on top of your payroll. It is vital that the correct about of National Insurance and tax is paid for your employees. Timely and accurate reporting and payment of these taxes are crucial to avoid penalties. Work with an account or payroll company to help you.  

 

 

All employers must provide a workplace pension scheme and automatically enroll eligible workers. Contributions must meet the minimum legal levels. Regularly review your pension scheme to ensure compliance with auto-enrolment duties. 

 

 

The Equality Act 2010 protects employees from discrimination based on protected characteristics such as age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, and sexual orientation. Promote an inclusive workplace and provide training to prevent discrimination and harassment. 

 

Maintain accurate records of employment, payroll, and benefits for at least six years. Proper documentation helps in compliance audits and resolving employee disputes. Under the UK General Data Protection Regulation (GDPR), employers must handle personal data responsibly and securely. Ensure you have clear policies for data processing, storage, and sharing. Provide training to employees on data protection principles to safeguard personal information. 

 

 

 

You must adhere to all these key legal requirements.  

There is a lot to know and there are so many dangers to doing your own HR which we have discussed in this blog! 

 

Prioritising HR compliance not only safeguards your business against legal issues but also contributes to a positive and thriving workplace culture. 

If you are a small business owner and need help navigating the complex area of HR then get in touch with Plain Talking HR for more help and support.